New Jersey | 1-3822 | 21-0419870 | ||
State of Incorporation | Commission File Number | I.R.S. Employer Identification No. |
(d) | Exhibits |
CAMPBELL SOUP COMPANY | |||
(Registrant) | |||
Date: May 18, 2018 | By: | /s/ Anthony P. DiSilvestro | |
Anthony P. DiSilvestro | |||
Senior Vice President and Chief Financial Officer | |||
INVESTOR CONTACT: | MEDIA CONTACT: | ||
Ken Gosnell | Thomas Hushen | ||
(856) 342-6081 | (856) 342-5227 | ||
ken_gosnell@campbellsoup.com | thomas_hushen@campbellsoup.com |
• | Net Sales Increased 15 Percent Reflecting Impact of Recently Completed Acquisition of Snyder’s-Lance; Organic Sales Comparable to Prior Year |
• | Earnings Before Interest and Taxes (EBIT) Loss of $475 Million Includes Impairment Charges of $619 Million Related to Campbell Fresh Segment; Adjusted EBIT Increased 1 Percent |
• | Earnings Per Share (EPS) Loss of $1.31; Adjusted EPS Increased 19 Percent to $0.70 |
• | Campbell Revises Fiscal 2018 Guidance |
Three Months Ended | Nine Months Ended | ||||||||||
($ in millions, except per share) | |||||||||||
Apr. 29, 2018 | Apr. 30, 2017 | % Change | Apr. 29, 2018 | Apr. 30, 2017 | % Change | ||||||
Net Sales | |||||||||||
As Reported (GAAP) | $2,125 | $1,853 | 15% | $6,466 | $6,226 | 4% | |||||
Organic | —% | (1)% | |||||||||
Earnings (Loss) Before Interest and Taxes | |||||||||||
As Reported (GAAP) | $(475)* | $298 | n/m | $180 | $960 | (81)% | |||||
Adjusted | $308 | $305 | 1% | $1,127 | $1,210 | (7)% | |||||
Diluted Earnings Per Share | |||||||||||
As Reported (GAAP) | $(1.31)* | $0.58 | n/m | $0.55 | $1.85 | (70)% | |||||
Adjusted | $0.70 | $0.59 | 19% | $2.62 | $2.51 | 4% |
Diluted Earnings Per Share | |||||||
Three Months Ended | Nine Months Ended | ||||||
Apr. 29, 2018 | Apr. 30, 2017 | Apr. 29, 2018 | Apr. 30, 2017 | ||||
As Reported (GAAP) | ($1.31) | $0.58 | $0.55 | $1.85 | |||
Impairment charges related to the Campbell Fresh segment | $1.65 | — | $1.89 | $0.58 | |||
Restructuring charges, implementation costs and other related costs associated with cost savings initiatives | $0.15 | $0.01 | $0.34 | $0.04 | |||
Transaction and integration costs related to the acquisition of Snyder's-Lance | $0.15 | — | $0.22 | — | |||
Claim settlement | $0.05 | — | $0.05 | — | |||
Pension and postretirement benefit mark-to-market adjustments | — | — | ($0.03) | $0.04 | |||
Nonrecurring net tax benefit related to U.S. Tax Reform | — | — | ($0.40) | — | |||
Adjusted | $0.70* | $0.59 | $2.62 | $2.51 |
($ in millions, except per share) | 2017 Results | Revised 2018 Guidance Before Snyder's-Lance | Snyder's-Lance Acquisition | Revised 2018 Guidance | ||||
Net Sales | $7,890 | 0 to +1% (Previously -1 to +1%) | ||||||
Adjusted EBIT | $1,492* | -11 to -9% (Previously -7 to -5%) | ||||||
Adjusted EPS | $3.04* | -3 to -1% (Previously +2 to +4%) | -3 pts -$0.10 | -6 to -5% $2.85 to $2.90 |
Three Months Ended Apr. 29, 2018 | |||||||
($ in millions) | |||||||
Americas Simple Meals and Beverages | Global Biscuits and Snacks | Campbell Fresh | Total | ||||
Net Sales, as Reported | $1,010 | $862 | $251 | $2,125** | |||
Volume and Mix | —% | 1% | 2% | 1% | |||
Price and Sales Allowances | —% | 1% | —% | —% | |||
Promotional Spending | (2)% | (1)% | —% | (1)% | |||
Organic Net Sales | (2)% | 1% | 1%* | —% | |||
Currency | —% | 1% | —% | 1% | |||
Acquisitions | 6% | 32% | —% | 14% | |||
% Change vs. Prior Year | 5%* | 35%* | 1% | 15% | |||
Segment Operating Earnings | $217 | $123 | $(19) | ||||
% Change vs. Prior Year | (3)% | 23% | n/m |
Nine Months Ended Apr. 29, 2018 | |||||||
($ in millions) | |||||||
Americas Simple Meals and Beverages | Global Biscuits and Snacks | Campbell Fresh | Total | ||||
Net Sales, as Reported | $3,424 | $2,297 | $742 | $6,466** | |||
Volume and Mix | (3)% | 1% | —% | (1)% | |||
Price and Sales Allowances | —% | 1% | —% | —% | |||
Promotional Spending | —% | —% | —% | —% | |||
Organic Net Sales | (4)%* | 2% | —% | (1)% | |||
Currency | —% | 1% | —% | 1% | |||
Acquisitions | 2% | 10% | —% | 5% | |||
% Change vs. Prior Year | (1)%* | 13% | —% | 4%* | |||
Segment Operating Earnings | $827 | $382 | $(36) | ||||
% Change vs. Prior Year | (10)% | 9% | n/m |
Three Months Ended | ||||||||
April 29, 2018 | April 30, 2017 | |||||||
Net sales | $ | 2,125 | $ | 1,853 | ||||
Costs and expenses | ||||||||
Cost of products sold | 1,507 | 1,188 | ||||||
Marketing and selling expenses | 232 | 212 | ||||||
Administrative expenses | 163 | 142 | ||||||
Research and development expenses | 27 | 28 | ||||||
Other expenses / (income) | 647 | (15 | ) | |||||
Restructuring charges | 24 | — | ||||||
Total costs and expenses | 2,600 | 1,555 | ||||||
Earnings (loss) before interest and taxes | (475 | ) | 298 | |||||
Interest, net | 42 | 28 | ||||||
Earnings (loss) before taxes | (517 | ) | 270 | |||||
Taxes on earnings | (124 | ) | 94 | |||||
Net earnings (loss) | (393 | ) | 176 | |||||
Net loss attributable to noncontrolling interests | — | — | ||||||
Net earnings (loss) attributable to Campbell Soup Company | $ | (393 | ) | $ | 176 | |||
Per share - basic | ||||||||
Net earnings (loss) attributable to Campbell Soup Company | $ | (1.31 | ) | $ | .58 | |||
Dividends | $ | .35 | $ | .35 | ||||
Weighted average shares outstanding - basic | 301 | 304 | ||||||
Per share - assuming dilution | ||||||||
Net earnings attributable to Campbell Soup Company | $ | (1.31 | ) | $ | .58 | |||
Weighted average shares outstanding - assuming dilution | 301 | 306 |
Nine Months Ended | ||||||||
April 29, 2018 | April 30, 2017 | |||||||
Net sales | $ | 6,466 | $ | 6,226 | ||||
Costs and expenses | ||||||||
Cost of products sold | 4,299 | 3,899 | ||||||
Marketing and selling expenses | 679 | 682 | ||||||
Administrative expenses | 477 | 408 | ||||||
Research and development expenses | 84 | 80 | ||||||
Other expenses / (income) | 688 | 197 | ||||||
Restructuring charges | 59 | — | ||||||
Total costs and expenses | 6,286 | 5,266 | ||||||
Earnings before interest and taxes | 180 | 960 | ||||||
Interest, net | 104 | 84 | ||||||
Earnings before taxes | 76 | 876 | ||||||
Taxes on earnings | (91 | ) | 307 | |||||
Net earnings | 167 | 569 | ||||||
Net loss attributable to noncontrolling interests | — | — | ||||||
Net earnings attributable to Campbell Soup Company | $ | 167 | $ | 569 | ||||
Per share - basic | ||||||||
Net earnings attributable to Campbell Soup Company | $ | .55 | $ | 1.86 | ||||
Dividends | $ | 1.05 | $ | 1.05 | ||||
Weighted average shares outstanding - basic | 301 | 306 | ||||||
Per share - assuming dilution | ||||||||
Net earnings attributable to Campbell Soup Company | $ | .55 | $ | 1.85 | ||||
Weighted average shares outstanding - assuming dilution | 302 | 308 |
Three Months Ended | |||||||||
April 29, 2018 | April 30, 2017 | Percent Change | |||||||
Sales | |||||||||
Contributions: | |||||||||
Americas Simple Meals and Beverages | $ | 1,010 | $ | 966 | 5% | ||||
Global Biscuits and Snacks | 862 | 639 | 35% | ||||||
Campbell Fresh | 251 | 248 | 1% | ||||||
Corporate | 2 | — | n/m | ||||||
Total sales | $ | 2,125 | $ | 1,853 | 15% | ||||
Earnings | |||||||||
Contributions: | |||||||||
Americas Simple Meals and Beverages | $ | 217 | $ | 224 | (3)% | ||||
Global Biscuits and Snacks | 123 | 100 | 23% | ||||||
Campbell Fresh | (19 | ) | 1 | n/m | |||||
Total operating earnings | 321 | 325 | (1)% | ||||||
Corporate | (772 | ) | (27 | ) | |||||
Restructuring charges | (24 | ) | — | ||||||
Earnings (loss) before interest and taxes | (475 | ) | 298 | n/m | |||||
Interest, net | 42 | 28 | |||||||
Taxes on earnings | (124 | ) | 94 | ||||||
Net earnings (loss) | (393 | ) | 176 | n/m | |||||
Net loss attributable to noncontrolling interests | — | — | |||||||
Net earnings (loss) attributable to Campbell Soup Company | $ | (393 | ) | $ | 176 | n/m | |||
Per share - assuming dilution | |||||||||
Net earnings attributable to Campbell Soup Company | $ | (1.31 | ) | $ | .58 | n/m |
Nine Months Ended | |||||||||
April 29, 2018 | April 30, 2017 | Percent Change | |||||||
Sales | |||||||||
Contributions: | |||||||||
Americas Simple Meals and Beverages | $ | 3,424 | $ | 3,459 | (1)% | ||||
Global Biscuits and Snacks | 2,297 | 2,025 | 13% | ||||||
Campbell Fresh | 742 | 742 | —% | ||||||
Corporate | 3 | — | n/m | ||||||
Total sales | $ | 6,466 | $ | 6,226 | 4% | ||||
Earnings | |||||||||
Contributions: | |||||||||
Americas Simple Meals and Beverages | $ | 827 | $ | 915 | (10)% | ||||
Global Biscuits and Snacks | 382 | 352 | 9% | ||||||
Campbell Fresh | (36 | ) | (1 | ) | n/m | ||||
Total operating earnings | 1,173 | 1,266 | (7)% | ||||||
Corporate | (934 | ) | (306 | ) | |||||
Restructuring charges | (59 | ) | — | ||||||
Earnings before interest and taxes | 180 | 960 | (81)% | ||||||
Interest, net | 104 | 84 | |||||||
Taxes on earnings | (91 | ) | 307 | ||||||
Net earnings | 167 | 569 | (71)% | ||||||
Net loss attributable to noncontrolling interests | — | — | |||||||
Net earnings attributable to Campbell Soup Company | $ | 167 | $ | 569 | (71)% | ||||
Per share - assuming dilution | |||||||||
Net earnings attributable to Campbell Soup Company | $ | .55 | $ | 1.85 | (70)% |
April 29, 2018 | April 30, 2017 | ||||||
Current assets | $ | 2,329 | $ | 1,790 | |||
Plant assets, net | 3,174 | 2,372 | |||||
Intangible assets, net | 8,881 | 3,170 | |||||
Other assets | 182 | 119 | |||||
Total assets | $ | 14,566 | $ | 7,451 | |||
Current liabilities | $ | 3,403 | $ | 2,352 | |||
Long-term debt | 8,080 | 2,270 | |||||
Other liabilities | 1,672 | 1,339 | |||||
Total equity | 1,411 | 1,490 | |||||
Total liabilities and equity | $ | 14,566 | $ | 7,451 | |||
Total debt | $ | 9,843 | $ | 3,392 | |||
Cash and cash equivalents | $ | 199 | $ | 313 |
Nine Months Ended | |||||||
April 29, 2018 | April 30, 2017 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 167 | $ | 569 | |||
Adjustments to reconcile net earnings to operating cash flow | |||||||
Impairment charges | 694 | 212 | |||||
Restructuring charges | 59 | — | |||||
Stock-based compensation | 48 | 48 | |||||
Noncurrent income taxes | 52 | — | |||||
Amortization of inventory fair value adjustment from acquisition | 37 | — | |||||
Pension and postretirement benefit income | (48 | ) | (35 | ) | |||
Depreciation and amortization | 266 | 234 | |||||
Deferred income taxes | (192 | ) | 11 | ||||
Other, net | 10 | 15 | |||||
Changes in working capital, net of acquisitions | |||||||
Accounts receivable | (18 | ) | 1 | ||||
Inventories | 50 | 144 | |||||
Prepaid assets | (84 | ) | (20 | ) | |||
Accounts payable and accrued liabilities | 26 | (116 | ) | ||||
Other | (43 | ) | (52 | ) | |||
Net cash provided by operating activities | 1,024 | 1,011 | |||||
Cash flows from investing activities: | |||||||
Purchases of plant assets | (223 | ) | (195 | ) | |||
Purchases of route businesses | (5 | ) | — | ||||
Sales of route businesses | 5 | — | |||||
Businesses acquired, net of cash acquired | (6,773 | ) | — | ||||
Other, net | (12 | ) | (14 | ) | |||
Net cash used in investing activities | (7,008 | ) | (209 | ) | |||
Cash flows from financing activities: | |||||||
Net short-term borrowings (repayments) | 234 | (66 | ) | ||||
Long-term borrowings | 6,200 | — | |||||
Long-term repayments | (43 | ) | (76 | ) | |||
Dividends paid | (321 | ) | (314 | ) | |||
Treasury stock purchases | (86 | ) | (305 | ) | |||
Treasury stock issuances | — | 2 | |||||
Payments related to tax withholding for stock-based compensation | (23 | ) | (21 | ) | |||
Repurchase of noncontrolling interest | (47 | ) | — | ||||
Payments of debt issuance costs | (49 | ) | — | ||||
Net cash provided by (used in) financing activities | 5,865 | (780 | ) | ||||
Effect of exchange rate changes on cash | (1 | ) | (5 | ) | |||
Net change in cash and cash equivalents | (120 | ) | 17 | ||||
Cash and cash equivalents — beginning of period | 319 | 296 | |||||
Cash and cash equivalents — end of period | $ | 199 | $ | 313 |
Three Months Ended | |||||||||||||||||||
April 29, 2018 | April 30, 2017 | % Change | |||||||||||||||||
(millions) | Net Sales, as Reported | Impact of Currency | Impact of Acquisitions | Organic Net Sales | Net Sales, as Reported | Net Sales, as Reported | Organic Net Sales | ||||||||||||
Americas Simple Meals and Beverages | $ | 1,010 | $ | (4 | ) | $ | (55 | ) | $ | 951 | $ | 966 | 5% | (2)% | |||||
Global Biscuits and Snacks | 862 | (9 | ) | (207 | ) | 646 | 639 | 35% | 1% | ||||||||||
Campbell Fresh | 251 | — | — | 251 | 248 | 1% | 1% | ||||||||||||
Corporate | 2 | — | — | 2 | — | n/m | n/m | ||||||||||||
Total Net Sales | $ | 2,125 | $ | (13 | ) | $ | (262 | ) | $ | 1,850 | $ | 1,853 | 15% | —% |
Nine Months Ended | |||||||||||||||||||
April 29, 2018 | April 30, 2017 | % Change | |||||||||||||||||
(millions) | Net Sales, as Reported | Impact of Currency | Impact of Acquisitions | Organic Net Sales | Net Sales, as Reported | Net Sales, as Reported | Organic Net Sales | ||||||||||||
Americas Simple Meals and Beverages | $ | 3,424 | $ | (16 | ) | $ | (83 | ) | $ | 3,325 | $ | 3,459 | (1)% | (4)% | |||||
Global Biscuits and Snacks | 2,297 | (24 | ) | (207 | ) | 2,066 | 2,025 | 13% | 2% | ||||||||||
Campbell Fresh | 742 | — | — | 742 | 742 | —% | —% | ||||||||||||
Corporate | 3 | — | — | 3 | — | n/m | n/m | ||||||||||||
Total Net Sales | $ | 6,466 | $ | (40 | ) | $ | (290 | ) | $ | 6,136 | $ | 6,226 | 4% | (1)% |
(1) | In the first quarter of fiscal 2018, the company incurred gains of $14 million in Other expenses / (income) ($10 million after tax, or $.03 per share) associated with mark-to-market adjustments for defined benefit pension and postretirement plans. In the first quarter of fiscal 2017, the company incurred losses of $20 million in Other expenses / (income) ($13 million after tax, or $.04 per share) associated with mark-to-market adjustments for defined benefit pension and postretirement plans. For the year ended July 30, 2017, the company incurred gains of $178 million in Other |
(2) | In fiscal 2015, the company implemented initiatives to reduce costs and to streamline its organizational structure. In fiscal 2017, the company expanded these cost savings initiatives by further optimizing its supply chain network, primarily in North America, continuing to evolve its operating model to drive efficiencies, and more fully integrating its recent acquisitions. In January 2018, as part of the expanded initiatives, the company authorized additional costs to improve the operational efficiency of its thermal supply chain network in North America by closing its manufacturing facility in Toronto, Ontario, and to optimize its information technology infrastructure by migrating certain applications to the latest cloud technology platform. |
(3) | In the second quarter of fiscal 2018, the company announced its intent to acquire Snyder's-Lance, Inc and incurred transaction costs of $24 million in Other expenses / (income) ($19 million after tax, or $.06 per share) associated with the acquisition. The acquisition closed on March 26, 2018, and in the third quarter of fiscal 2018, the company incurred $82 million of transaction and integration costs, of which $10 million was recorded in Restructuring charges, $6 million in Administrative expenses, $29 million in Other expenses / (income), and $37 million in Cost of products sold associated with an acquisition date fair value adjustment for inventory. The company also recorded a gain in Interest expense of $18 million on treasury rate lock contracts used to hedge the planned financing of the acquisition. The aggregate impact was $64 million, $46 million after tax, or $.15 per share. In the nine-month period of fiscal 2018, the company incurred $88 million of transaction and integration costs, of which $10 million was recorded in Restructuring charges, $6 million in Administrative expenses, $53 million in Other expenses / (income), $37 million in Cost of products sold, and a gain on the treasury rate lock contracts of $18 million in Interest expense. The aggregate after-tax impact was $65 million, or $.22 per share. |
(4) | In the nine-month period of fiscal 2018, the company reflected the impact on taxes of the enactment of the Tax Cuts and Jobs Act that was signed into law in December 2017. The company recorded a tax benefit of $179 million due to the remeasurement of deferred tax assets and liabilities, and a tax charge of $59 million related to the transition tax on unremitted foreign earnings. The net impact was a tax benefit of $120 million ($.40 per share). |
(5) | In the third quarter of fiscal 2018, the company performed interim impairment assessments within Campbell Fresh on the deli reporting unit, which includes Garden Fresh Gourmet and the U.S. refrigerated soup business, and the Bolthouse Farms refrigerated beverages and salad dressings reporting unit. Within the deli unit, the company revised its long-term outlook due to potential loss of refrigerated soup business with certain customers, as well as the recent performance of the business. In addition, the operating performance of the Bolthouse Farms refrigerated beverages and salad dressing reporting unit was below expectations. The company revised its long-term outlook for future earnings and cash flows for each of these reporting units. The company recorded a non-cash impairment charge of $11 million on the tangible assets and $94 million on the intangible assets ($80 million after tax, or $.27 per share) of the deli reporting unit, and a non-cash impairment charge of $514 million ($417 million after tax, or $1.39 per share) related to the intangible assets of the Bolthouse Farms refrigerated beverages and salad dressings reporting unit. The aggregate impact of the impairment charges was $619 million, of which $11 million was recorded in Cost of products sold and $608 million in Other expenses / (income), ($497 million after tax, or $1.65 per share). |
(6) | In the third quarter of fiscal 2018, the company recorded a loss of $22 million in Other expenses / (income) ($15 million after tax, or $.05 per share) from a settlement of a legal claim. |
(7) | For the year ended July 30, 2017, the company recorded a tax benefit of $52 million in Taxes on earnings primarily related to the sale of intercompany notes receivable to a financial institution, which resulted in the recognition of foreign exchange losses on the notes for tax purposes. In addition, the company recorded a $6 million reduction to interest expense ($4 million after tax) related to premiums and fees received on the sale of the notes. The aggregate impact was $56 million after tax, or $.18 per share. |
Three Months Ended | |||||||||||||||||||||||||
April 29, 2018 | April 30, 2017 | ||||||||||||||||||||||||
(millions, except per share amounts) | As reported | Adjustments(a) | Adjusted | As reported | Adjustments(a) | Adjusted | Adjusted Percent Change | ||||||||||||||||||
Gross margin | $ | 618 | $ | 62 | $ | 680 | $ | 665 | $ | — | $ | 665 | 2% | ||||||||||||
Gross margin percentage | 29.1 | % | 32.0 | % | 35.9 | % | 35.9 | % | |||||||||||||||||
Marketing and selling expenses | $ | 232 | $ | (2 | ) | $ | 230 | $ | 212 | $ | — | $ | 212 | ||||||||||||
Administrative expenses | $ | 163 | $ | (36 | ) | $ | 127 | $ | 142 | $ | (7 | ) | $ | 135 | |||||||||||
Other expenses / (income) | $ | 647 | $ | (659 | ) | $ | (12 | ) | $ | (15 | ) | $ | — | $ | (15 | ) | |||||||||
Restructuring charges | $ | 24 | $ | (24 | ) | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Earnings (loss) before interest and taxes | $ | (475 | ) | $ | 783 | $ | 308 | $ | 298 | $ | 7 | $ | 305 | 1% | |||||||||||
Interest, net | 42 | 18 | 60 | 28 | — | 28 | |||||||||||||||||||
Earnings (loss) before taxes | $ | (517 | ) | $ | 765 | $ | 248 | $ | 270 | $ | 7 | $ | 277 | ||||||||||||
Taxes | (124 | ) | 162 | 38 | 94 | 3 | 97 | ||||||||||||||||||
Effective income tax rate | 24.0 | % | 15.3 | % | 34.8 | % | 35.0 | % | |||||||||||||||||
Net earnings (loss) attributable to Campbell Soup Company | $ | (393 | ) | $ | 603 | $ | 210 | $ | 176 | $ | 4 | $ | 180 | 17% | |||||||||||
Diluted net earnings per share attributable to Campbell Soup Company* | $ | (1.31 | ) | $ | 2.00 | $ | .70 | $ | .58 | $ | .01 | $ | .59 | 19% | |||||||||||
(a)See following table for additional information. | |||||||||||||||||||||||||
*The sum of individual per share amounts may not add due to rounding. |
Three Months Ended | |||||||||||||||||||||||
April 29, 2018 | April 30, 2017 | ||||||||||||||||||||||
(millions, except per share amounts) | Restructuring charges, implementation costs and other related costs (2) | Transaction and integration costs (3) | Impairment charges (5) | Claim settlement (6) | Adjustments | Restructuring charges, implementation costs and other related costs (2) | |||||||||||||||||
Gross margin | $ | 14 | $ | 37 | $ | 11 | $ | — | $ | 62 | $ | — | |||||||||||
Marketing and selling expenses | (2 | ) | — | — | — | (2 | ) | — | |||||||||||||||
Administrative expenses | (30 | ) | (6 | ) | — | — | (36 | ) | (7 | ) | |||||||||||||
Other expenses / (income) | — | (29 | ) | (608 | ) | (22 | ) | (659 | ) | — | |||||||||||||
Restructuring charges | (14 | ) | (10 | ) | — | — | (24 | ) | — | ||||||||||||||
Earnings before interest and taxes | $ | 60 | $ | 82 | $ | 619 | $ | 22 | $ | 783 | $ | 7 | |||||||||||
Interest, net | — | 18 | — | — | 18 | — | |||||||||||||||||
Earnings before taxes | $ | 60 | $ | 64 | $ | 619 | $ | 22 | $ | 765 | $ | 7 | |||||||||||
Taxes | 15 | 18 | 122 | 7 | 162 | 3 | |||||||||||||||||
Net earnings attributable to Campbell Soup Company | $ | 45 | $ | 46 | $ | 497 | $ | 15 | $ | 603 | $ | 4 | |||||||||||
Diluted net earnings per share attributable to Campbell Soup Company | $ | .15 | $ | .15 | $ | 1.65 | $ | .05 | $ | 2.00 | $ | .01 |
Nine Months Ended | |||||||||||||||||||||||||
April 29, 2018 | April 30, 2017 | ||||||||||||||||||||||||
(millions, except per share amounts) | As reported | Adjustments(a) | Adjusted | As reported | Adjustments(a) | Adjusted | Adjusted Percent Change | ||||||||||||||||||
Gross margin | $ | 2,167 | $ | 68 | $ | 2,235 | $ | 2,327 | $ | — | $ | 2,327 | (4)% | ||||||||||||
Gross margin percentage | 33.5 | % | 34.6 | % | 37.4 | % | 37.4 | % | |||||||||||||||||
Marketing and selling expenses | $ | 679 | $ | (2 | ) | $ | 677 | $ | 682 | $ | — | $ | 682 | ||||||||||||
Administrative expenses | $ | 477 | $ | (74 | ) | $ | 403 | $ | 408 | $ | (18 | ) | $ | 390 | |||||||||||
Other expenses / (income) | $ | 688 | $ | (744 | ) | $ | (56 | ) | $ | 197 | $ | (232 | ) | $ | (35 | ) | |||||||||
Restructuring charges | $ | 59 | $ | (59 | ) | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Earnings before interest and taxes | $ | 180 | $ | 947 | $ | 1,127 | $ | 960 | $ | 250 | $ | 1,210 | (7)% | ||||||||||||
Interest, net | 104 | 18 | 122 | 84 | — | 84 | |||||||||||||||||||
Earnings before taxes | $ | 76 | $ | 929 | $ | 1,005 | $ | 876 | $ | 250 | $ | 1,126 | |||||||||||||
Taxes | (91 | ) | 305 | 214 | 307 | 46 | 353 | ||||||||||||||||||
Effective income tax rate | (119.7 | )% | 21.3 | % | 35.0 | % | 31.3 | % | |||||||||||||||||
Net earnings attributable to Campbell Soup Company | $ | 167 | $ | 624 | $ | 791 | $ | 569 | $ | 204 | $ | 773 | 2% | ||||||||||||
Diluted net earnings per share attributable to Campbell Soup Company | $ | .55 | $ | 2.07 | $ | 2.62 | $ | 1.85 | $ | .66 | $ | 2.51 | 4% | ||||||||||||
(a)See following tables for additional information. |
Nine Months Ended | |||||||||||||||||||||||||||
April 29, 2018 | |||||||||||||||||||||||||||
(millions, except per share amounts) | Mark-to-market (1) | Restructuring charges, implementation costs and other related costs (2) | Transaction and integration costs (3) | Tax reform (4) | Impairment charges (5) | Claim settlement (6) | Adjustments | ||||||||||||||||||||
Gross margin | $ | — | $ | 20 | $ | 37 | $ | — | $ | 11 | $ | — | $ | 68 | |||||||||||||
Marketing and selling expenses | — | (2 | ) | — | — | — | — | (2 | ) | ||||||||||||||||||
Administrative expenses | — | (68 | ) | (6 | ) | — | — | — | (74 | ) | |||||||||||||||||
Other expenses / (income) | 14 | — | (53 | ) | — | (683 | ) | (22 | ) | (744 | ) | ||||||||||||||||
Restructuring charges | — | (49 | ) | (10 | ) | — | — | — | (59 | ) | |||||||||||||||||
Earnings before interest and taxes | $ | (14 | ) | $ | 139 | $ | 106 | $ | — | $ | 694 | $ | 22 | $ | 947 | ||||||||||||
Interest, net | — | — | 18 | — | — | — | 18 | ||||||||||||||||||||
Earnings before taxes | $ | (14 | ) | $ | 139 | $ | 88 | $ | — | $ | 694 | $ | 22 | $ | 929 | ||||||||||||
Taxes | (4 | ) | 36 | 23 | 120 | 123 | 7 | 305 | |||||||||||||||||||
Net earnings attributable to Campbell Soup Company | $ | (10 | ) | $ | 103 | $ | 65 | $ | (120 | ) | $ | 571 | $ | 15 | $ | 624 | |||||||||||
Diluted net earnings per share attributable to Campbell Soup Company | $ | (.03 | ) | $ | .34 | $ | .22 | $ | (.40 | ) | $ | 1.89 | $ | .05 | $ | 2.07 |
Nine Months Ended | |||||||||||||||
April 30, 2017 | |||||||||||||||
(millions, except per share amounts) | Mark-to-market (1) | Restructuring charges, implementation costs and other related costs (2) | Impairment charges (5) | Adjustments | |||||||||||
Gross margin | $ | — | $ | — | $ | — | $ | — | |||||||
Administrative expenses | — | (18 | ) | — | (18 | ) | |||||||||
Other expenses / (income) | (20 | ) | — | (212 | ) | (232 | ) | ||||||||
Earnings before interest and taxes | $ | 20 | $ | 18 | $ | 212 | $ | 250 | |||||||
Interest, net | — | — | — | — | |||||||||||
Earnings before taxes | $ | 20 | $ | 18 | $ | 212 | $ | 250 | |||||||
Taxes | 7 | 7 | 32 | 46 | |||||||||||
Net earnings attributable to Campbell Soup Company | $ | 13 | $ | 11 | $ | 180 | $ | 204 | |||||||
Diluted net earnings per share attributable to Campbell Soup Company | $ | .04 | $ | .04 | $ | .58 | $ | .66 |
Year Ended | ||||||
(millions, except per share amounts) | July 30, 2017 | |||||
Gross margin, as recast* | $ | 2,925 | ||||
Add: Restructuring charges, implementation costs and other related costs (2) | 4 | |||||
Adjusted Gross margin | $ | 2,929 | ||||
Adjusted Gross margin percentage | 37.1 | % | ||||
Earnings before interest and taxes, as reported | $ | 1,400 | ||||
Deduct: Total pension and postretirement benefit mark-to-market adjustments (1) | (178 | ) | ||||
Add: Restructuring charges, implementation costs and other related costs (2) | 58 | |||||
Add: Impairment charges (5) | 212 | |||||
Adjusted Earnings before interest and taxes | $ | 1,492 | ||||
Interest, net, as reported | $ | 107 | ||||
Add: Sale of notes (7) | 6 | |||||
Adjusted Interest, net | $ | 113 | ||||
Adjusted Earnings before taxes | $ | 1,379 | ||||
Taxes on earnings, as reported | $ | 406 | ||||
Deduct: Tax expense from total pension and postretirement benefit mark-to-market adjustments (1) | (62 | ) | ||||
Add: Tax benefit from restructuring charges, implementation costs and other related costs (2) | 21 | |||||
Add: Tax benefit from impairment charges (5) | 32 | |||||
Add: Tax benefit from sale of notes (7) | 50 | |||||
Adjusted Taxes on earnings | $ | 447 | ||||
Adjusted effective income tax rate | 32.4 | % | ||||
Net earnings attributable to Campbell Soup Company, as reported | $ | 887 | ||||
Deduct: Net adjustment from total pension and postretirement benefit mark-to-market adjustments (1) | (116 | ) | ||||
Add: Net adjustment from restructuring charges, implementation costs and other related costs (2) | 37 | |||||
Add: Net adjustment from impairment charges (5) | 180 | |||||
Deduct: Net adjustment from sale of notes (7) | (56 | ) | ||||
Adjusted Net earnings attributable to Campbell Soup Company | $ | 932 | ||||
Diluted net earnings per share attributable to Campbell Soup Company, as reported | $ | 2.89 | ||||
Deduct: Net adjustment from total pension and postretirement benefit mark-to-market adjustments (1) | (.38 | ) | ||||
Add: Net adjustment from restructuring charges, implementation costs and other related costs (2) | .12 | |||||
Add: Net adjustment from impairment charges (5) | .59 | |||||
Deduct: Net adjustment from sale of notes (7) | (.18 | ) | ||||
Adjusted Diluted net earnings per share attributable to Campbell Soup Company | $ | 3.04 | ||||
*Reflects the impact of the adoption of new accounting guidance on the presentation of net periodic pension cost and net periodic postretirement benefit cost in the first quarter of fiscal 2018. |
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